Southeast Asia > Laos > Economy

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Agriculture > products sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice, water buffalo, pigs, cattle, poultry
Aid as % of GDP	16.4%		[16th of 129]
Debt > External	$3,179,000,000.00		[108th of 136]
Distribution of family income > Gini index	34.6		[13th of 43]
Economic freedom	0.6		[155th of 156]
Economy > Overview The government of Laos, one of the few remaining one-party Communist states, began decentralizing control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking - growth averaged 6% per year in 1988-2007 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. Despite this high growth rate, Laos remains a country with a underdeveloped infrastructure, particularly in rural areas. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements in the road system with support from Japan and China. Electricity is available in urban areas and in most rural districts. Subsistence agriculture, dominated by rice, accounts for about 40% of GDP and provides 80% of total employment. The economy will continue to benefit from aid from international donors and from foreign investment in hydropower and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. Several policy changes since 2004 may help spur growth. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to benefit from lower tariffs on exports. Laos is taking steps to join the World Trade Organization in the next few years; the resulting trade policy reforms will improve the business environment. On the fiscal side, a value-added tax (VAT) regime, slated to begin in 2008, should help streamline the government's inefficient tax system.
Exchange rates kips per US dollar - 10,820 (2004), 10,569 (2003), 10,056.3 (2002), 8,954.6 (2001), 7,887.6 (2000)
Exports	$970,000,000.00		[136th of 189]
GDP	$3,403,670,000.00		[126th of 203]
GDP > PPP	$11,208,000,000.00		[120th of 163]
GDP > Real growth rate	7.5%		[37th of 198]
GDP growth > annual %	7.02 annual %		[31st of 187]
GINI index	34.65		[15th of 40]
Human Development Index	0.545		[134th of 178]
Income distribution > Poorest 10%	3.2%		[29th of 114]
Income distribution > Richest 10%	30.6%		[53rd of 114]
Population below poverty line	30.7%		[12th of 46]
Population under $1 a day	26.3		[25th of 59]
Poverty > Share of all poor people	0.13 % of world's poor		[37th of 80]
Tourist arrivals	193,000		[102nd of 152]

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